Europe Union sign out Agreement to reduce gas use in the coming winter.
- Lufthansa cuts most flights to Frankfurt and Munich amid strike.
- European profits come into effect, the disappointment in the profits of UBS.
Trading Earnings Season: 3 Steps to Using Earnings Reports
DAX 40: Slashing profits and lowering gases wrestle with morale
The Dax European stocks followed slightly lower in early European trade, weighed by disappointing earnings from Swiss banking giant UBS and caution over the upcoming federal policy decision. The index itself was struggling as news continued to filter from yesterday that supplies through the main Nord Stream 1 pipeline are set to drop to around 20% of capacity as of Wednesday, Gazprom SAOG said. Out of service. This made the chances of EU countries being able to reach the 80% gas storage mobilization target unlikely, increasing the risk of lowering gas demand. Sven Giegold, Germany’s deputy economy minister, said the new rules were an “unprecedented step in European solidarity”. Halting Russian gas supplies to the European Union could cut GDP by up to 1.5% if the winter is cold and the region fails to take energy-saving precautions, the commission estimates, with Germany’s industrial economy likely to suffer further. damage and spoilage.
Deutsche Lufthansa AG, Europe’s largest airline, will cancel nearly all flights from its main German hubs in Frankfurt and Munich on Wednesday due to a ground crew strike, adding to the chaos that has dogged Europe’s crucial summer travel season. The total number of flights at this point is about 1,000 flights between the two cities which may last until the end of the week. Summer in Europe usually supported by tourism has seen many challenges with travel hampering the Eurozone economy, an economy that is already suffering due to many factors.
As the European earnings season begins to recover, we have received reports from UBS Group AG a Weaker-than-expected profit in the second quarter, as massive selling in the global market kept wealthy clients on the sidelines and institutional investors withdrawing funds. However, this week’s main focus remains on the Federal Reserve. United State cInteral Bank It is widely expected to rise by at least 75 basis points Wednesday Because it looks to tame accelerating inflation. The Federal Open Market Committee The statement and accompanying press conference by Federal Reserve Chairman Jerome Powell will be carefully considered amid concerns that these sharp interest rate hikes will plunge the world’s largest economy and key global growth engine into recession.
How do central banks affect the forex market?
DAX 40 Daily Chart – 26 July 2022
DAX 40 2H Chart – 26 Jul 2022
From a technical perspective, tolast week“The bullish candlestick failed to close above the 13300 resistance area which we rejected yesterday before falling further. On the daily chart, the price remains compressed between 20-SMA which falls on The main psychological level (13,000) and 50-SMA. Without a final candle break and a close above these levels, we remain range bound as sentiment continues to shift.
On the other hand, the 2 hour chart saw a breakout below the gray box in which the price seemed to consolidate. However we have bounced from 100-SMA Which may need a candle to close aboveResistance area 13200 before it looks higher. Rejection of the gray box may lead to more downsides, as currently marrying bias is not possible given the market conditions.
Key levels worth watching during the day:
Written by: Zain Fouda, Market Writer for DailyFX.com
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